October 22, 2022

Do You Make These Simple Mistakes in Receiving Tax Incentives for Film Production?

One of the busiest moments throughout a project is when it is getting ready to go into production. If you are film tax credit lenders, everything from finding a venue to assembling a cast and crew has to be managed. 

Nevertheless, it is vital to protect your finances since errors are inevitable for film production tax credits. For example, the production cannot risk losing a tax incentive or film incentives credit due to inaccurate payroll tax withholding, which may significantly affect the budget.

Avoid the Most Common Mistakes

Governments in various regions provide various incentives, each of which local law mandates. As a result, mistakes relating to missing or incorrect withholding are a common source of trouble for producers when incentive audits roll around.

There may be many causes for this. Due to the hectic nature of production, there is not always clear communication between the production and payroll departments, which may lead to errors in location identification and withholding.

Guidelines

Keep these guidelines in mind to improve the quality of your show’s withholding:

• Before beginning production in a state, it is important for Film Tax credit lenders offering a filmmaking incentive. Ensure you read their regulations for film incentives. 
• Know what is expected of you and to whom the rules apply (BTL, ATL, residents, non-residents, loan-outs, etc.)
• Be sure to let your employer know if you will be shooting in a state that offers financial incentives to filmmakers.
• Provide the paymaster with a complete list of all loaned funds and people subject to further withholding.
• You must let your payroll manager know if any businesses or people you’ve loaned money to do not need additional incentive withholding for film production tax credits.
• You must notify your paymaster whenever there is a shift or an addition to the production’s talent or crew for film production tax credits.
• Make sure that the correct work location is noted on the timecards daily, mainly if you work in more than one place.
• Group in a batch of those employees who have their wages adjusted for tax purposes.
• Before approving the paycheck, make sure everything is in order.

As you can see, there are many things to remember when applying for and receiving film incentives for film production for film tax credit lenders. Unfortunately, many people make simple mistakes that can cost them time and money. By following the tips we’ve outlined in this blog post, you can avoid these common errors and maximize your benefits from film incentives tax credits or film production tax credits.